How to Repair Bad Credit or FICO Score
Credit repair will increase your FICO score and help you become a prime applicant for home loans and auto loans. Being a prime applicant results in the best terms and the most competitive rates for financing. You can hire a company or use a credit counseling agency to help you fix your bad credit history, but it's not necessary to spend money on these services when you can repair credit yourself for free.
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Instructions
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Get your free annual credit report. Accurate information on your credit report contributes to a good credit score. Look at your credit profile at least once a year by ordering the report from annualcreditreport.com. Contact the credit bureaus if you notice mistakes.
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Open new accounts only if necessary. Inquiries from applying for new lines of credit reduce your credit score.
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Pay down accounts. Get a handle on credit card debt and start reducing your balances to help repair bad credit. Since the amount you owe makes up 30% of your credit rating, maxing out your credit cards can damage your rating. Use extra money to get rid of balances and stop using credit.
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Learn about online bill pay to manage your accounts better. Paying credit cards and other bills online helps you manage the account and may reduce late payments. Sign up for free and begin monitoring your account online. Check due dates, recent activity or enroll in automatic payments.
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